Key Highlights

  • FY2025 Revenue of A$214.5 million, broadly flat, with adjusted EBITDA of A$9.3 million (down approximately 56%)
  • Order book of approximately A$529 million reported in FY2025, up significantly year-on-year
  • Total pipeline of approximately A$4 billion, boosted by entry into the water infrastructure sector
  • Acquisition of a water infrastructure Business for up to A$30 million, expected to contribute approximately A$135 million revenue and A$1.4 billion pipeline in FY2026
  • A$23 million defence fuel contract secured in July 2026, reinforcing the Defence and Government segment

Saunders International (ASX: SND) is a 75-year-old engineering and construction contractor that has spent recent years deliberately broadening its revenue base beyond its traditional tank-construction roots. The company's FY2025 Earnings were soft due to project delays and weather impacts, which explains much of the share-price weakness. Looking forward, however, the order book and pipeline have expanded significantly — creating a contrast between a disappointing recent result and a more positive forward indicator.

For investors, the key question is whether the enlarged order book translates into restored margins and earnings in FY2026 and beyond, or whether execution challenges persist under a new Leadership arrangement.

What Saunders Does

Founded in 1951, Saunders made its name building large liquid storage tanks and has since broadened into a design, procurement, construction and commissioning specialist spanning energy, resources, defence and water infrastructure. The company operates across Australia, New Zealand and the Pacific and has deliberately diversified toward more Recurring Revenue streams over recent years.

FY2025 Results: A Soft Patch

For FY2025, Saunders reported revenue of A$214.5 million, broadly flat year-on-year, with adjusted EBITDA falling approximately 56% to A$9.3 million. Management attributed the earnings decline to unforeseen project delays and weather impacts. The company held cash of A$22.1 million and paid total dividends of 2.25 cents per share for the year — maintaining Shareholder returns despite the earnings softness.

The Order Book Tells a Different Story

Despite the soft earnings year, the forward pipeline is the standout indicator. Saunders entered FY2026 with an order book of approximately A$529 million and a total pipeline of approximately A$4 billion, both boosted by its move into the water sector. The water infrastructure Acquisition completed during the period is expected to contribute approximately A$135 million of revenue and a A$1.4 billion pipeline in FY2026. A further A$23 million defence fuel contract was secured in July 2026, reinforcing the company's position in the Defence and Government sector.

Leadership Transition and Risks

The company is also navigating a leadership change, with the long-serving CEO stepping down and a successor being appointed. CEO transitions introduce execution uncertainty, particularly in a thin-margin contracting business where relationships and project management experience are critical. Contracting earnings can also be volatile — project overruns and weather impacts remain real risks, as FY2025 demonstrated. Successfully integrating the water infrastructure acquisition at scale is the key operational test for the year ahead.

Conclusion

Saunders International enters FY2026 with its largest-ever order book and pipeline, spanning defence, water, energy and resources — a more diversified revenue base than at any prior point. Whether that pipeline converts into materially improved margins will be the critical test. Monitoring the FY2026 result, new contract awards and the leadership transition will be central to following the SND story. This article is for educational purposes only and does not constitute financial advice.